Polygon price sees dip after key executive departure
- Polygon co-founder Jaynti Kanani announced exit from the project on Wednesday.
- MATIC price underwent a minor correction after the announcement, but remains relatively stable in the big picture.
- Polygon 2.0's testnet launch is promising as TVL has been range-bound in September.
Polygon (MATIC) registered a 5% price dip hours after co-founder Jaynti Kanani announced his exit from the project. Kanani is known for his significant contributions to the Polygon ecosystem since 2017.
Polygon Co-founder steps down
Polygon co-founder Jaynti Kanani took to X to reveal that he stepped away from the platform around six months ago. The executive is reportedly shifting his focus to new ventures he founded this year. In the past months, Polygon made major changes to its top offices while announcing Marc Boiron as chief executive officer.
Co-founder Sandeep Nailwal said that Kanani's exit is a turning point for Polygon. Immediately in response to the news, MATIC's price remained steady, as did the broader altcoin market. However, MATIC's last week's rally, which saw over a 10% price increase, has waned. According to CoinGecko data, MATIC saw a 5% correction on Thursday.
However, tweets by the co-founders suggest that the Polygon management team is optimistic after the launch of Polygon 2.0 testnet.
After kickstarting Polygon in 2017, around 6 months back, I decided to step back from the day-to-day grind.
— Jaynti Kanani (JD) (@jdkanani) October 4, 2023
I'm more confident in Polygon's bright future and passionate community. I'll be focusing on new adventures while still cheering and contributing to Polygon from the…
Polygon 2.0 testnet launch could prove promising
The introduction of Polygon 2.0 has positively impacted community sentiments. Kanani also expressed his bullish outlook on Polygon 2.0 in his farewell note, an update that looks set to bring significant changes to the blockchain. POL is set to introduce zero knowledge-based Layer 2 chain which launched on the Goerli testnet on Wednesday.
As per the official release, Polygon Improvement Proposal (PIP) governance process led to changes to the EIP-1559 burn system, paving the way for Polygon 2.0's Phase 0.
Polygon 2.0 will unveil the governance structure in the coming weeks.
At the time of writing, Polygon trades at $0.55, a 5% price decline in the last 24 hours. However, total value locked in Polygon's decentralized finance (DeFi) protocols has remained range-bound in the last month. Polygon's TVL has been between $780 and $815 million since September.
Polygon TVL
Based on DefiLlama figures, network’s TVL stood at $797 million on Thursday, broadly unchanged from recent levels but way far from the almost all-time high of about $10 billion it reached in June 2021.
The network has attracted 312,388 users in decentralized applications over the last 24 hours. Therefore, all price dips can be considered minor with the market relatively stable. The optimism surrounding the launch of Polygon 2.0 suggests potential for upward price movement for MATIC and TVL growth.
Author
Shraddha Sharma
FXStreet
With an educational background in Investment Banking and Finance, Shraddha has about four years of experience as a financial journalist, covering business, markets, and cryptocurrencies.
